Greene King’s boss issues update as 150 pubs put up for sale | UK | News
The boss of a UK brewery giant has issued an update on its decision to put 150 of its pubs up for sale. Greene King, which owns approximately 2,500 pubs, restaurants and hotels in England, Wales and Scotland, recently announced that it plans to make a major change to its property and put approximately 150 of its pubs up for sale.
The brewery giant, which also produces Greene King IPA, Old Speckled Hen and Belhaven beers, has identified “around 300 managed facilities that could be better served under different models.” The firm expects roughly half of these (approximately 150 pubs) to be converted into rented, tenanted or franchised venues within the Pub Partners property, with the remaining 150 spaces to be considered for a potential sale. Affected locations will be moved to a new, separate business unit during the transition. Greene King has also identified a small number of sites for closure, representing less than 2% of the property managed, in line with the group’s typical annual activities. Announcing the brewery’s annual results, Green King chief executive Nick Mackenzie said: “Long-term permanent reforms from the government are essential to ensure unprecedented costs do not hinder the industry’s enormous potential.”
Quoted by city AMHe blamed “the cost environment that our industry has been facing for the last five years, rising employment costs, rising cost of goods with events like the Ukraine war, and obviously what’s happening right now in Iran and the overall economy.”
Mackenzie also took aim at business rates after changes to the tax in last year’s Budget saw bills for thousands of pubs soar and saw Chancellor Rachel Reeves forced to take out a £300 million concession.
In March, Mackenzie said: “As consumer habits continue to evolve and the operating environment remains dynamic, we are confident that our new bar space strategy will position us to deliver sustainable profitable growth over the long term.
“The realignment of our assets allows us to leverage the strengths of our brands, leverage our digital and loyalty investments, invest effectively in our core portfolio and, most importantly, continue to deliver exceptional experiences to our customers.”
Last month, it was also said that the shake-up was part of the company’s wider 2030 group strategy; Greene King said it was focused on delivering market share growth and improving margins in what it described as an “increasingly dynamic operating environment.”
Funds raised from the sales are expected to be reinvested into the company’s core pub space, alongside plans to invest an estimated £35 million this year in digital technology aimed at strengthening customer loyalty and supporting growth.
Greene King operates three main divisions – its ‘Managed Pubs’ arm manages around 1,500 sites, including brands such as Greene King pubs, Hungry Horse, Chef & Brewer, Farmhouse Inns and Flaming Grill, as well as ventures such as Hickory’s and the hotel business.
